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Aggressive Growth

Biglari Holdings Inc. easily beat expectations recently and is now expected to triple earnings this year.

Company Description

Biglari Holdings is best known for its Steak n Shake restaurants, which has almost 500 locations. The company also runs over 100 other restaurants under a variety of names.

Net Income More than Doubles

On Aug 13 Biglari Holdings reported quarterly results that showed net earnings of $8.7 million, up from $3.8 million. That number breaks down to $6.23 per share, which is easily ahead of the $2.66 that analysts were expecting.

Revenue for the period was up more than 10%, to $161.5 million. Same-store sales were up 7.5% mostly due to a jump in customer traffic.

Estimates Jump

Following the news the forecasts rose dramatically. There is only one covering analyst providing estimates and their full-year outlook is up $4.04 to $17.00 per share.

Next year's estimate is up $4.14 to $19.14. Given the $5.40 earned last year, the growth rates are 215% and 13%, respectively.

The Chart

Earnings expectations have rebounded nicely after the struggling through the heart of the recession.

Biglari Holdings Inc. - ticker BH >
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Bill Wilton is the Growth Stock Strategist for Zacks.com. He is also the Editor in charge of the market-beating Zacks Growth Trader service

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